Apple has a pretty decent warranty system setup where a phone damaged under warranty will net you a new (refurbished) phone, no questions asked. Of course there are certain requirements needed to be met, but for simple hardware faults such as home/lock button malfunctioning, it’s a relatively simple process. Now it seems that an electronics store in China has been somewhat abusing Apple’s policy and have been running a scam in which they return fake phones back to Apple, and in return receive genuine components from which they will build and sell real iPhones.

According to the report, five employees at the shop have since been arrested. iPhones are apparently a pretty common sight in China and we have come across several cases in which Chinese retailers have been forced to shut down for either using Apple’s name illegally, or by selling fake Apple products. What do you guys think? Admittedly enterprising?